HSBC is slashing rates for some Premier savings customers (Image: Getty Images)
Today marks a significant move by one of the UK’s leading banks as HSBC announced they are set to cut on their easy-access Premier Savings for a number of customers. Savers with less than £50,000 will see their interests reduced from a hearty 1.98% to a lesser 1.74%.
But there’s more unwelcome news on the horizon, with reporting another impending rate decrease in April, taking it down even further to 1.49%. Not stopping there, HSBC’s Flexible Saver account holders will also witness a rate reduction, from 1.49% to 1.37%, starting April 17.
It’s worth mentioning that HSBC’s Premier Savings are exclusive to its Premier banking service clients, usually requiring them to either maintain £50,000 in an HSBC account or earn at least £100,000 per annum. Easy access savings accounts offer the flexibility of unlimited withdrawals without major penalties, unlike fixed-term savings options.
Amid this series of reductions, finance specialist Rachel Springall from Moneyfactscompare.co.uk said: “It’s so disheartening to see savings rates chopped in the last few days, but it just proves why savers are at the mercy of base rate cuts. Not even challenger banks have been able to escape making cuts as the market sentiment for lower has taken charge.”
She cautioned: “Savers need to proactively keep on top of the best rates and review their pots regularly to see if they are getting a raw deal. Now is an ideal time for savers to consider grabbing a fixed rate deal so they can get a guaranteed return on their cash.”
This advice comes in the wake of HSBC rolling out new options with appealing low fixed rates. Specifically, they have introduced a 3.98% five-year fixed rate accompanied by a £999 product fee.
That said, these enticing terms are reserved exclusively for Premier banking customers of HSBC. Additionally, eligibility is limited to those embarking on their first home purchase or transitioning between properties.
Conversely, for existing homeowners looking to remortgage, the offered rate stands at 3.99%—somewhat higher than many rival products—and stipulates that borrowers must possess at least 40% equity in their property.